Companies Act 2014 section 1431

Application of sections 113 to 115 to bodies corporate generally

Section 1431 extends the rules on subsidiary membership of holding companies (sections 113 to 115) so that they apply not only to companies registered under the Companies Act but also to bodies corporate that are not technically "companies" under the Act.

• Section 113 (which prevents a body corporate from being a member of its own holding company) is extended to apply to bodies corporate that are not companies, covering all company types under Parts 16 to 24.
• Sections 114 and 115 (which deal with a subsidiary holding shares in its holding company and civil liability for improper purchases) are similarly extended to bodies corporate that are not companies, covering company types under Parts 16 to 22.
• Any allotment or transfer of shares in a company to its subsidiary is void, subject to certain exemptions set out in the relevant sections.
• The provision originates from section 32 of the Companies Act 1963 and is designed to prevent undesirable forms of inter-company financing between holding companies and subsidiaries.